Top business leaders are buying into looming recession fears, as a survey published Friday found 76.1% of chief executives believe there will be a recession in their company’s primary area of operations before the end of 2023.
The survey conducted by the Conference Board business research group among 750 CEOs and other C-suite executives found that 15% of CEOs believe there already is a recession and 43.3% think there will be a recession by the end of 2022.
Another 17.8% predict a recession by the end of 2023.
Just 19.1% of CEOs said they don’t expect a recession in the next 2-3 years.
Several concerning factors have accelerated widespread angst about a recession: the Dow Jones Industrial Average is down more than 18% year-to-date, inflation is at a four-decade high and the U.S. GDP shrunk 1.5% in the first quarter of 2022. The Fed’s hike this week was its largest since 1994, and Morgan Stanley chief U.S. equity strategist Michael Wilson told CNBC Thursday the rate increase “raises the risk of a recession.”
President Joe Biden said a recession is “not inevitable” in an interview Thursday with the Associated Press. Despite the widening fears, several experts agree with Biden’s sentiments, including Nationwide chief of investment research Mark Hackett, who said last week fears are “being overblown,” and LPL Financial chief economist Jeffrey Roach, who said he believes the economy is merely slowing not shrinking.
Recession Fears Surge Among CEOs, Survey Suggests (Wall Street Journal)